Ecosystem Goods and Services from Canadian Grasslands Presentation to CFGA. Dimple Roy November 2016

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1 Ecosystem Goods and Services from Canadian Grasslands Presentation to CFGA Dimple Roy November 2016

2 The International Institute for Sustainable Development (IISD) Independent, non-profit organization that undertakes policy analysis to help governments, institutions and companies make tangible advances in the development and implementation of policies that promote equity and a healthy planet Areas of focus: resilience, economic law and policy, energy, water and knowledge for integrated decisions Based in Canada with over 200 staff and associates, and offices in Winnipeg, Ottawa, Geneva and New York

3 Outline Introduction to ecosystem services and relevance for management Introduction to grassland ecosystems and illustrative EGS Operationalizing EGS in agriculture (grasslands) Quantifying ecosystem processes and services Aggregating at a landscape scale Valuing EGS benefits and trade-offs Applying appropriate markets and policies Proposed next steps

4 EGS linked to human well-being Source: Millennium Ecosystem Assessment, 2005

5 Connecting Ecological Processes-Benefits 6. Policies and markets Source: Naturalcapitalireland.com Paying for public EGS benefits

6 Global Grassland Ecosystems Source: IUCN, 2013

7 Illustrative Ecosystem Services from Grasslands Carbon Sequestration: Deep-roots and perennial growth improves soil carbon. Water Management: Perennial forage crops with their deep root systems can prevent nitrogen leaching during heavy rainfall better than shallow-rooted annual crops, whose root systems are only active during a shorter part of the year. Biodiversity: Increasing focus on functional biodiversity (elements providing the same ecosystem service). Source: Wilson et. al., 2016 Source: Havstad, et.al Presentation Title Presentation Date

8 Temperature Climate Projections Summary o Climate projections were extracted from: o 12 Global Climate Models, each using o 2 Carbon Emissions Scenarios (RCP4.5 and RCP8.5) Range within High Carbon Projections (RCP8.5) Range within Current Climate Range within Low Carbon Projections (RCP4.5) Recent Past Near Future Far Future ( ) ( ) ( )

9 Quantifying Processes and Benefits (including trade-offs and uncertainty) Source: Stockholm Environment Institute Source: Watson, R.T., 2012

10 Quantifying Processes and Benefits Landscape Aggregation

11 Quantifying Values Landscape Aggregation Valuation technique Market Price Technique Effect on Production technique Surrogate market approach Cost-based approach Stated preference approach Description Looks at what it costs to buy or sell based on supply and demand, scarcity and marginal value. Attempts to relate to the changes in output of particular services and related production Include travel costs and hedonic pricing- relating to people s expenditures or prices of other market goods and services Include replacement costs, preventative expenses or avoided damage costs, look at market trade-offs or avoided costs. Ask consumers to state their preferences directly. Use contingent valuation, and often a combination of analyses and choice experiments.

12 Quantifying Values- MB Grasslands Source: Kulshreshtha, et. al., 2015

13 Markets and Policies: Some Considerations Source: Government of Canada, 2005

14 Establishing Markets and Policies Emerging Carbon Markets and Policies: Paris agreement, Cap and Trade, Carbon Tax, etc. Emerging Water Markets and Policies: Water Allocation Trading, Water Quality Trading, Wetlands Management Programs Emerging Biodiversity Markets and Policies: Hunting and recreational; pollinators, pest control; Potential targeting in high biodiv. areas. Emerging EGS Programs: ALUS, etc.

15 Farm of the Future Source: Scientific American, 2005 Presentation Title Presentation Date

16 EGS from Grasslands Biodiversity Credits Grasslands provide pollinators, pest control, hunting recreational values. Water Credits Deep-rooted, longer-growing grasslands educe N and P loss to water systems as well as are resilient to variability in water. Carbon Credits Rangelands sequester more carbon by storing it above- and belowground. Improving SOC has multiple benefits, including productivity. Resilience Credits Flood, drought and others disaster damage is mitigated by grasslands.

17 Watersheds of the Future

18 Aggregating to Multifunctional Landscapes Water Credits Large water users and management are accessing credits for water storage, and quality improvements Biomass Credits Biomaterials/ bioenergy markets pay for excess biomass from ditches, wetland maintenance. Carbon Credits An established carbon market compensates for land uses that store carbon for specific time periods. Biodiversity Credits Hunting, fishing and as established biodiversity market pays for improved functional biodiversity Adaptation Credits An emphasis on increasing flood/drought has led to clear markets for improving landscape resilience. COMMODITY % INCOME Water Credits CO 2 Credits Biomass Income Biodiversity Credits Agricultural/Forest ry commodities MARKET DEMAND Watershed Org. Offsetters Bioenergy suppliers Conservation Trust Regional/Global markets

19 From Research to Commercialization turning a problem into a sustainable input for the Bioeconomy Cattail Biomass Pellets for fuel Bioenergy - Heat Lower GHG emissions CO 2 N Captured P N C Exported P N C P Harvesting cattail captures stored P and N recovery of Phosphorus (P) Sustainable renewable biomass feedstock for bioenergy (displace fossil fuels, i.e. coal) or higher value bioproducts Carbon credits - production of low carbon bioenergy, while reaping benefits of P capture from Lake Winnipeg Lake Friendly biomass Opening wetland site for wildlife habitat renewal Bioremediation + habitat renewal + GHG reductions ASH Recovery 88% Phosphorus Recovery

20 Markets and Policies: Some Considerations Impact measurement and targeting (Are we there yet?) Value for Public money (2011 OAG report) Equity Vs. Additionally Adaptive Management Ease of Implementation

21 Proposed Work (CFGA, MA, IISD, Univ. of SK.) 1. Synthesize EGS and best management practices for Canadian grasslands (literature review) 2. TEV of grasslands and forages across Canada (University of Sask.) 3. Analyze policies and programs to see how to deliver in the most efficient and effective way 4. Test economic values through grasslands management scenarios through different sites 5. Communicate, communicate, communicate!

22 Thanks Dimple Roy